For most people buying a home is the biggest financial commitment they will make. Within the last few years house prices have raised so much producing a booming market, one which many first time buyers would struggle to get a grip with. Everyone has to get onto the property ladder at some time which is why we have compiled a quick guide to buying that dream home.

First find out how much you can borrow from the bank.

Traditionally a bank would lend you 3 times your income this would increase if you have someone else buying the property with you. The mortgage lender would traditionally calculate two an a half times both your salaries combined. The amount of times a lender can multiply your income has increased since the rise in property value.

Self certification mortgages have been introduced for which you do not have to provide proof of earnings to a mortgage lender, making it suitable for freelancers and self employed people. More and more people have been tempted to borrow more than what is the normal amount, many have claimed to borrow 5 times their salary.

There are other costs involved when buying a home besides the property price. The following list is of things which need to be considered when setting money aside for extra costs:

• Legal fees

• Searches made on the land and property

• Land registry fee

• Local authority searches

• Stamp duty for home sold less than £60,000 is nothing

• Stamp duty for home sold more than £250,000 is 5% of the price property is bought at.

• Stamp duty for home sold more than £500,000 is 4% of the property price

• House survey fees - for mortgage valuation

• Structural survey

• Moving costs

• Any outstanding bills on existing properties

• Any immediate bills - gas, electricity etc.
  
  

When viewing potential property always keep in mind colours etc is cosmetic which can be changed. Everything can be changed but at a price, evaluate how much the work you require would cost you and add it to the asking price. Location is a key element when buying property especially if you have a family.

The initial price on the property is not always what the property is worth, the price indicates the most the property is worth. A true indication can be seen only after the surveys have been done on the home. Surveys costs money every time it's done you must always try and bring the price down as mush as you can first. Look at other similar houses in the area and their selling price. Always try and pitch for the lowest price and build you way up slowly when negotiating a price. You will find yourself saving thousands this way.

For help with regards to finding a mortgage fill in our mortgage enquiry form and one of our brokers will talk you through your options finding the best suited mortgage for you.